The Black-Scholes-Merton model is a limit case of the Cox-RossRubinstein model. If the time periods become infinitely many and infinitesimally small, a "multiplicative" binomial process like that in figure E. becomes the Black-Scholes-Merton log-normal random walk in continuous time, but other stochastic processes can also be modeled using the Cos-Ross-Rubinstein approach.

Donald MacKenzie, An Engine, Not a Camera, loc. 1289